BAKU, Azerbaijan, October 9. Agriculture accounts for around 45% of the loan portfolio of the Azerbaijan Business Development Fund, Deputy Chairman of the Fund’s Management Board Murad Abdullayev said at the 3rd International Agro Business Forum in Baku on Friday, Trend’s correspondent reports from the event.
He noted that agriculture was one of the sectors of major importance to Azerbaijan’s economy, with significant development potential. The fund aims to mobilize existing support mechanisms to accelerate the sector’s development.
According to Abdullayev, the Azerbaijan Business Development Fund was established through the merger of the Entrepreneurship Development Fund and the Azerbaijan Investment Company. It is one of the state’s key financial and development institutions.
“We support entrepreneurs operating in agriculture and other sectors. This support is provided through direct capital investments, on the one hand, and concessional loans, on the other,” he said.
Last year, the fund’s total loan portfolio exceeded $235.3 million. Based on agriculture’s share of the portfolio, approximately $58.8 million to $88.2 million in financial resources was directed to the sector, Abdullayev said.
He also highlighted several issues that make it difficult for agricultural entrepreneurs to access financing. One of the main challenges, he said, concerns land ownership documents.
“Although the Azerbaijan Business Development Fund manages state funds, we work directly with banks. Banks must complete the necessary documentation to assess and insure risks during the financing process. Land ownership documents play an important role among these records,” Abdullayev explained.
He added that proposals were being prepared at various levels to address issues related to land documentation.
Another challenge highlighted by the fund official was inadequate accounting and reporting practices, particularly among small-scale farms. According to him, some entrepreneurs generate income but cannot substantiate it with official documentation, limiting their access to financing.
“Some entrepreneurs generate substantial income and profits but cannot substantiate them with official documents. This creates significant difficulties in accessing financing. It would be appropriate to organize training sessions for small farm owners on accounting and reporting,” he said.
Abdullayev added that the fund had simplified documentation requirements to facilitate financing for small farms. In particular, the business plan previously required from small farms is no longer mandatory; entrepreneurs now need to submit only an information inquiry form.
“I consider this one of the important steps taken by our fund to improve access to financing in agriculture,” he said.
